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Viasat (VSAT) to Power In-Flight Connectivity in Breeze
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In a growing testament to the gradual revival of the airline industry from the COVID-19 setback, Viasat Inc. (VSAT - Free Report) has secured a prime contract for Ka-band satellite in-flight connectivity (IFC) solutions from low-cost airline operator Breeze Airways for an undisclosed amount. The improved IFC services will aim to offer enhanced Internet capabilities with best-in-class in-flight entertainment options to entice customers and will likely contribute to the uptrend in leisure air travel demand.
Per the deal, Breeze will use Viasat’s Ka-band IFC solutions in Airbus A220-300 aircraft. The airline company currently has 80 Airbus A220s on order with an option for an additional 40. The first aircraft featuring Viasat connectivity solutions is expected to enter service in October 2022. The solutions will enable high-quality, high-speed Internet and video streaming service on the personal electronic device of users to make air travel more digitally accessible and seamless.
Viasat’s Ka-band solutions enable business jet customers to enjoy high-speed Internet connectivity from takeoff to touchdown. It empowers aviation clients to reinforce their IFC investments and helps customers stay connected with smooth web browsing and streaming services. Equipped with unrivalled speed and quality, Viasat’s Ka-band service has been specifically designed to meet accretive demand for data backed by next-gen business applications. The Ka-band leverages global bandwidth to provide avant-garde Internet service with best-in-market pricing to boost the competitiveness of the business jet market.
The surging popularity of high-engagement IFC solutions has compelled leading airline companies to scout for new ways to utilize Viasat’s high-capacity satellite solutions to maximize passenger satisfaction. The company’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. With an advanced level of Internet connectivity, Breeze will offer customers an opportunity to stream all types of video content and seamlessly access Wi-Fi aboard. In addition, it is likely to sow the seeds for future entertainment enhancements and personalization on customer seatback screens.
Viasat’s Satellite Services business is progressing well, with key metrics including steady growth of ARPU (average revenue per user) and revenues showing impressive growth. ARPU is growing on the back of a solid retail distribution network, accounting for a growing proportion of high value and high bandwidth subscriber base. Further, the growing adoption of in-flight Wi-Fi services in commercial aircraft like that of Breeze is benefiting the business.
The stock has lost 4.3% over the past year, while the industry has rallied 3.4% in the same period. Nevertheless, we are impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock.
Clearfield delivered an earnings surprise of 50.7%, on average, in the trailing four quarters. Earnings estimates for the company’s current year have moved up 102.7% since March 2021. Over the past year, Clearfield has gained a solid 77%.
Sierra Wireless, Inc. , carrying a Zacks Rank #2 (Buy), in another key pick. Sierra Wireless has a long-term earnings growth expectation of 12.5% and delivered an earnings surprise of 58%, on average, in the trailing four quarters.
Over the past year, Sierra Wireless has gained 14.8%. Earnings estimates for the current year for the stock have moved up 68.8% since March 2021. The company continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.
Qualcomm Incorporated (QCOM - Free Report) , carrying a Zacks Rank #2, is also a solid pick. It has a long-term earnings growth expectation of 16.1% and delivered an earnings surprise of 12.2%, on average, in the trailing four quarters.
Earnings estimates for the current fiscal for the stock have moved up 43.2% over the past year, while that for the next fiscal is up 48.6%. Qualcomm is likely to benefit in the long run from solid 5G traction and a surge in demand for essential products that are the building blocks of digital transformation in the cloud economy.
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Viasat (VSAT) to Power In-Flight Connectivity in Breeze
In a growing testament to the gradual revival of the airline industry from the COVID-19 setback, Viasat Inc. (VSAT - Free Report) has secured a prime contract for Ka-band satellite in-flight connectivity (IFC) solutions from low-cost airline operator Breeze Airways for an undisclosed amount. The improved IFC services will aim to offer enhanced Internet capabilities with best-in-class in-flight entertainment options to entice customers and will likely contribute to the uptrend in leisure air travel demand.
Per the deal, Breeze will use Viasat’s Ka-band IFC solutions in Airbus A220-300 aircraft. The airline company currently has 80 Airbus A220s on order with an option for an additional 40. The first aircraft featuring Viasat connectivity solutions is expected to enter service in October 2022. The solutions will enable high-quality, high-speed Internet and video streaming service on the personal electronic device of users to make air travel more digitally accessible and seamless.
Viasat’s Ka-band solutions enable business jet customers to enjoy high-speed Internet connectivity from takeoff to touchdown. It empowers aviation clients to reinforce their IFC investments and helps customers stay connected with smooth web browsing and streaming services. Equipped with unrivalled speed and quality, Viasat’s Ka-band service has been specifically designed to meet accretive demand for data backed by next-gen business applications. The Ka-band leverages global bandwidth to provide avant-garde Internet service with best-in-market pricing to boost the competitiveness of the business jet market.
The surging popularity of high-engagement IFC solutions has compelled leading airline companies to scout for new ways to utilize Viasat’s high-capacity satellite solutions to maximize passenger satisfaction. The company’s impressive bandwidth productivity sets it apart from conventional and lower-yield satellite providers that run on incumbent business models. With an advanced level of Internet connectivity, Breeze will offer customers an opportunity to stream all types of video content and seamlessly access Wi-Fi aboard. In addition, it is likely to sow the seeds for future entertainment enhancements and personalization on customer seatback screens.
Viasat’s Satellite Services business is progressing well, with key metrics including steady growth of ARPU (average revenue per user) and revenues showing impressive growth. ARPU is growing on the back of a solid retail distribution network, accounting for a growing proportion of high value and high bandwidth subscriber base. Further, the growing adoption of in-flight Wi-Fi services in commercial aircraft like that of Breeze is benefiting the business.
The stock has lost 4.3% over the past year, while the industry has rallied 3.4% in the same period. Nevertheless, we are impressed with the inherent growth potential of this Zacks Rank #3 (Hold) stock.
Image Source: Zacks Investment Research
A better-ranked stock in the industry is Clearfield, Inc. (CLFD - Free Report) , sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Clearfield delivered an earnings surprise of 50.7%, on average, in the trailing four quarters. Earnings estimates for the company’s current year have moved up 102.7% since March 2021. Over the past year, Clearfield has gained a solid 77%.
Sierra Wireless, Inc. , carrying a Zacks Rank #2 (Buy), in another key pick. Sierra Wireless has a long-term earnings growth expectation of 12.5% and delivered an earnings surprise of 58%, on average, in the trailing four quarters.
Over the past year, Sierra Wireless has gained 14.8%. Earnings estimates for the current year for the stock have moved up 68.8% since March 2021. The company continues to launch innovative products for business-critical operations that require high security and optimum 5G performance.
Qualcomm Incorporated (QCOM - Free Report) , carrying a Zacks Rank #2, is also a solid pick. It has a long-term earnings growth expectation of 16.1% and delivered an earnings surprise of 12.2%, on average, in the trailing four quarters.
Earnings estimates for the current fiscal for the stock have moved up 43.2% over the past year, while that for the next fiscal is up 48.6%. Qualcomm is likely to benefit in the long run from solid 5G traction and a surge in demand for essential products that are the building blocks of digital transformation in the cloud economy.